The residential real estate market in the area located between the Intracoastal Waterway and Turner Creek, which includes Whitemarsh and Oatland islands and Isle of Armstrong, is dominated by three distinct types of neighborhoods: Those filled with luxury homes, including waterfront; those dedicated to affordable “starter” homes popular with young couples; and condominium complexes.

The bursting of the housing bubble undercut all three sectors.

Would-be luxury home buyers postponed new purchases. The downturn led to an increased supply of affordable homes on neighboring Wilmington Island, creating competition for those shoppers. With homes more affordable, demand for condos disappeared.

Sales in the area dropped by half between 2006 and 2009. The average sales price of single-family homes dipped by 23 percent. Yet Whitemarsh is already roaring back.

Single-family home sales jumped 23 percent in 2010 as luxury buyers moved to take advantage of depressed prices and the new Islands High School attracted families of school-age children.

Sales this year are off the 2010 pace, but prices have rebounded. The average price per square foot of homes sold this year is $147.08, $16 ahead of last year and just off the 2008 average.

“Demand has come back, and sellers are proving more negotiable than they have been,” said Vanessa Barger, a Realtor with ERA Southeast Coastal Real Estate that specializes in islands real estate. “We’re seeing younger people coming into all the neighborhoods, including the upscale ones, because of the schools and that’s making the island feel totally different.”

Whitemarsh is starkly different than Savannah’s other island communities when it comes to residential real estate.

A mix of neighborhoods and subdivisions exists. On the luxury side, the area offers gated communities such as Long Point, Marsh Harbor and Turner’s Rock as well as ungated neighborhoods such as Commodore Point, Bradley Point, yacht club and East Pines.

“Every one of them has a unique feel,” said Susan Ason a Realtor with Keller Williams Realty. “And being right off main roads headed into town appeals to buyers.”

Whitemarsh’s other neighborhoods have seen prices and sales stabilize, according to Barger.

Mercer Place, Sea Gate and the Gray’s Creek communities as well as the subdivisions that flank Penrose are getting good traffic. The one subdivision still struggling is Battery Point.

Prices continue to slip in the mid-island neighborhood, with 11 houses listed for $150,000 or less. Dozens more have been taken off the market and turned into rentals over the last couple of years. Realtors acknowledge some shoppers refuse to even look at homes in the subdivision.

A reinvigorated homeowner’s association is working to make Battery Point more appealing, however. They are improving the circulation of the water in the subdivision’s lagoons, and the neighborhood’s proximity to Marshpoint Elementary, Coastal Middle and Islands High schools – one of Battery Point’s entrances is across the street from the schools’ complex – should attract young buyers again as the market strengthens, Barger said.

“With an active association, things could shift there in a hurry,” Barger said. “Homes there are so affordable, and the schools have such a good reputation. Once the perception changes, the market will change for the better in there, too.”

CHARTICLE ELEMENTS

About the series

Once a month, business reporter Adam Van Brimmer will profile the residential housing market in specific areas and neighborhoods in Savannah and Chatham County. A panel of local Realtors helped determine the area boundaries and lent insights they have heard from buyers and sellers about the pros and cons of the areas.

Area

The Whitemarsh area, for the purposes of this project, is comprised of the neighborhoods located between the Wilmington Island and Turner Creek, including the areas commonly known as Oatland Island, Turner’s Rock, Long Point and Bradley Point.

Whitemarsh features single-family homes, townhouses and condos. The area includes many homes with water access on tidal creeks or the Wilmington River.

* Utilities: City of Savannah sewer and water in most subdivisions; septic and well systems in some neighborhoods north of Highway 80 and west of Johnny Mercer Boulevard.

* CAT access: Yes

* Hospitals: Candler and Memorial are approximately 9 miles away; St. Joseph’s is approximately 14 miles.

* Shopping/Restaurants: The Island Towne Center, which includes a Walmart and a Publix grocery store, is located at the area’s center. The Wilmington Island Johnny Mercer Boulevard retail corridor is located minutes away.

* Recreation: Green space and playgrounds in subdivisions; YMCA (membership fee) for baseball, basketball, soccer and football as well as paved paths for running and biking; Turner Creek and Frank Spencer boat ramps; Savannah Yacht Club (membership fee) with water access for boating and kayaking; The Wilmington Island Club golf course (membership fee) is located nearby.

Schools

Georgia’s schools are measured using the Adequate Yearly Progress (AYP) standards set up as part of the No Child Left Behind Act of 2001. The state has released the schools that met AYP requirements in 2010-11.

However, the most recently available achievement statistics are for the 2009-10 school year.

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I know this is an article from 5 months ago but I heard a Rumor the other day from a fellow Homeowner in Battery Point, Is it true that some of the Homes in Battery Point are going to be turned into Section 8 housing? His Centery 21 agent told him this? Would really like to know if there is any truth to this?